The GENIUS Act requires that all USD stablecoins must have a 1:1 full reserve, limited to cash or short-term U.S. Treasury bonds. Reserve audit results must be disclosed monthly, and users' funds are prohibited from being misappropriated or re-collateralized. Once the market value exceeds $10 billion, it must enter the federal regulatory system. Stablecoins have already been treated as 'formal financial instruments'.

Personally, I feel that this is a struggle for monetary dominance. The United States does not want stablecoins to spiral out of control, nor does it want to be overtaken by other CBDCs. Therefore, it chooses to set rules directly, first 'incorporating' stablecoins and then pushing them globally.